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As SAP Backs Out, Others Might Make Run at Jive Software (JIVE)

May 29, 2013 4:45 PM EDT
Jive Software (Nasdaq: JIVE) ended the session higher Wednesday as speculation that it might be a takeover target rose.

Bloomberg noted that International Business Machines (NYSE: IBM) or Oracle (Nasdaq: ORCL) might be intrest in the company following speculation that SAP AG (NYSE: SAP) might have shown interest last week. Sources said that SAP backed out due to too much overlap between product lines. SAP remains one of Jive's largest customers.

Microsoft (Nasdaq: MSFT) paid $1.2 billion for a similar company in Yammer.

Analysts see Jive boosting profits by 119 percent over the next three years.

One major risk for Jive is that many companies are building social enterprise products internally, which ebbs the need for products offered by Jive.

But, Jive's management team is seasoned in M&S, according to Bloomberg-compiled data. CEO Tony Zingale sold Mercury Interactive to Hewlett-Packard and Clarify to Nortel Networks.

Shares of Jive are flat in late trading.


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